Shareholder Protection

In the interests of financial security, business stability and continuity, it is essential for private limited companies to provide a safety net following the death of a Shareholder.
Shareholder Protection is usually put in place to ensure that, on the death of a shareholder, their shares are available for the other directors to buy and there is sufficient cash available to buy the shares.

The risk of not setting up some Shareholder Protection are as follows:

Shares may go to the deceased’s family, which has no interest in the business and may prefer a cash lump sum

The company or other shareholders may not have the resources to retain control by buying the deceased’s shares

The shares may be taken over by someone who does not share the company’s objectives, and they may even be a competitor

I can provide FREE Independent advise you on the best arrangement for your business, and put the necessary policies in place. I can also provide a free ‘draft’ cross option agreement, or put you in touch with a business legal expert who can draw one up for you..